Reference no: EM131709795

Subject: Assistance needed in answering questions

Bob owns a bar named Bob's Beer Bar. Bob sells all his interest in the bar to Joe, who agrees to allow Bob to continue to manage the bar. Joe does not change the name of the bar. Joe authorizes Bob to order certain items for the business, such as beer, sodas, juices, and napkins.  However, in addition to those authorized items, Bob orders expensive French wine, Cuban cigars, and Russian caviar.  These items are shipped from World Imports, Inc., to Bob's Beer Bar, but the business is not able to pay for them. However, Joe begins making payments to try to cover the purchases, primarily because the caviar has been selling well at the bar. World Imports, Inc. sues Bob's Beer Bar and Joe for the unpaid monies.

1. Who wins?

2. What are their arguments?

3. What legal theories should they use?